It is important to note that agribusiness is key for the country’s future since about 50 percent of the population still lives in rural areas. Uzbekistan is a leading cotton producer and heavily dependent on exports of natural gas, oil, gold, and uranium. Unfortunately, the government administers prices of many basic staples, such as natural gas, utilities, and bread.

The government has measured success in promoting an entrepreneurial middle-class largely in terms of loans to private enterprises and increased number of registered entrepreneurship entities. In December 2013, the chief economist of the Central Bank of the Republic of Uzbekistan, Mr. Otabek Tadjiddinov, reported that commercial banks had issued UZS 6.5 trillion in loans, about 1.3 times more than the previous year.

The continuous tight regulation of the economy is reflected in the fact that only in December 2012 did the Cabinet of Ministers pass a resolution allowing trade fairs of local manufacturers. Such a measure is healthier than others taken to foster local manufacturing that can substitute the large-scale importing of goods. In January 2013, exchange regulations received widespread attention regarding new import rules requiring burdensome amounts of paperwork. Interpreted as a way to allow some local manufacturers to catch up, the import-dependent sector of the economy was hit hard.

The key to enabling local manufacturers to compete with imports lies in “Tashabbus”, which means innovation, and the government is not oblivious to this. In March 2013, the United Nations Development Program reported on a Tashabbus competition, organized by the Chamber of Commerce and Industry of Uzbekistan, the Association of the Farmers of Uzbekistan, the Hunarmand Craftsmen Association, and a number of ministries and agencies. The competition, attended by over 7000 entrepreneurs, was reported to show the productivity and creativity that fuels the growth of Uzbekistan’s business sector. Abdulkhoshim Ismoilov won in the “Best Entrepreneur” category for his company that manufactures and exports a range of clothing and rubber products while employing 92 people. The “Best Woman Entrepreneur” award went to 22-year old Dilnoza Turapova, whose company makes a range of pottery products and trains people in her craft.

The creativity of the Uzbeks, and the country’s progress in job creation through small enterprises should inspire the nation to continue fostering an entrepreneurial spirit among its people. Uzbekistan should continue to build an enabling entrepreneurship ecosystem, leveraging its strategic location at the crossroads of Central Asia to allow its businesses to scale.